INFORMATION AND COMMUNICATIONS UNIVERSITY

SCHOOL OF BUSINESS

PRINCIPLES OF MANAGEMENT

An assignment submitted in partial fulfillment of the requirements for

the BA Degree in Economics and Finance

Student details
Name:
SIN:
Lecturer’s Name: Dr. Ndlovu
Year:
Due Date: 30 Th October, 2024
 INTRODUCTION
In order to understand whether someone is being an effective manager it is necessary to have
some idea of the expectations regarding the person’s roles and activities within the organization.
A number of different approaches have been taken in creating models of managerial functions or
activities. Fayol famously argued that there were five principle managerial functions—planning,
organizing, commanding, coordinating and controlling—and others have accepted these
categories and added a handful of others such as staffing and rewarding. Mintzberg criticized
Fayol’s “five functions” as being an inaccurate reflection of the complex and chaotic nature of
the manager’s tasks and suggested an alternative model of the ten core “roles”, or organized sets
of behaviors, identified with a managerial position, which he divided up into three groups:
interpersonal roles, informational roles and decisional roles. Others have pointed out that it is
useful to distinguish between “functional” and “general” managers, each of whom have their
own unique duties, responsibilities and skill requirements. Finally, the position or level of the
manager in the organizational hierarchy is likely to be relevant to his or her roles and activities:
“first-line” managers focus primarily on supervision of operational employees, “middle
managers” focus primarily on supervising the first-line managers and/or staff departments, and
“top-level” or “senior” managers focus on setting the strategic direction for the entire
organization (Weihrich, 1990).

Management is the process of setting and achieving organizational goals through its functions:
forecasting, organization, coordination, training and monitoring – evaluation. Leadership is the
ability to influence, to make others follow you, the ability to guide, the human side of business
for "teacher". Interest in leadership increased during the early part of the twentieth century. Early
leadership theories focused on what qualities distinguished between leaders and followers, while
subsequent theories looked at other variables such as situational factors and skill levels (Barnett,
2018).
 DISCUSSION

Q. 1

FAYOLS ROLE OF MANAGEMENT

Henri Fayol pioneered the notion of “functions of management” in his 1916 book
“Administration Industrial et Generale” in which he identified and described five functions of
managers—planning, organizing, commanding, coordinating and controlling—that he believed
were universal and required of all managers as they went about performing their day-to-day
activities regardless of whether they were operating in the business environment or overseeing
the activities of governmental, military, religious or philanthropic organizations.9 Fayol also
prescribed 14 general principals of management and organization that were intended to provide
managers with further guidance on how they might effectively execute their five primary
management functions. At the time, Fayol was the managing director of a large coal mining firm
in France and most of his ideas were based in large part on his own experiences as a manager as
opposed to classical empirical research (Fayol, 1949). Fayol’s work was not widely known
outside of France until 1949 when his book was first published in English. Nonetheless, his ideas
had already begun to appear in the emerging area of management studies. For example, in 1937
Gulick and Urwick coined the acronym “POSDCORB” to refer to their own collection of seven
management activities that included the five suggested by Fayol as well as two additional items:
reporting and budgeting. These activities have been described as follows:

1. Planning: Predetermining a course of action for accomplishing organizational objectives

2. Organizing: Arranging the relationships among work units for accomplishment of objectives
and the granting of responsibility and authority to obtain those objectives
3. Staffing: Selecting and training people for positions in the organization
4. Directing: Creating an atmosphere that will assist and motivate people to achieve desired end
results (sometimes referred to as “leading”)
5. Controlling: Establishing, measuring, and evaluating performance of activities toward planned
objectives.
The process school of management, and the accompanying functions described above, remained
the dominant analytical framework into the early 1970s when critics began to argue that Fayol’s
“five functions” were too “normative and functional” and failed to adequately capture the
complexity of a manager’s daily activities and the significant amount of time that managers must
devote to nurturing informal relationships with subordinates and other parties outside of the
organization in order to motivate the workforce, communicate their goals and ideas and collect
information about the organization’s external environment that can be used for planning.6
Perhaps the strongest opposition came from Mintzberg, who argued that the process school of
management and its emphasis on tightly defined functional categories did not accurately reflect
the complex and chaotic nature of the manager’s tasks. Mintzberg suggested an alternative model
of “managerial roles” and generated a fair amount of debate regarding the validity of the process
school of management. Several empirical studies were conductivities and the conclusion seemed
to be that both approaches were useful and valid ways to describe and analyze the work of
managers (Weihrich, 2004).

According to Lewis et al (2007), in recent years other suggestions and descriptions of managerial
roles and duties have been put forth by scholars and consultants working in a number of different
disciplines. For example, Noe, writing about the relationship between strategy and training,
argued that managers have a number of key roles and duties at companies that use high-
performance work practices:

a) Managing Alignment: Clarifying team and company goals; helping employees manage their
objectives and scanning the organizational environment for useful information for the team.
b) Coordinating Activities: Ensuring that the team is meeting internal and external customer
needs; ensuring that the team meets it quantity and quality objectives; helping the team resolve
problems with other teams and ensuring uniformity in the interpretation of policies and
procedures.
c) Facilitating Decision-Making Processes: Facilitating team decision-making and helping the
team use effective decision-making processes (i.e., dealing with conflicts and statistical process
controls).
d) Encouraging Continuous Learning: Helping the team identify training needs; helping the team
become effective at “on the job” training and creating an environment that encourages learning
e) Creating and Maintaining Trust: Ensuring that each team member is responsible for his or her
work load and customers; treating all team members with respect and listening and responding
honestly to team ideas
PRIMARY ROLES OF MANAGEMENT IN AN ORGANIZATION

While the discussion above illustrates that there have been a number of different approaches to
defining and modeling the management process and identify specific managerial functions and
activities, there is a fair amount of common ground that can be used to generate a short list of
important and generally agreed “functions of managers” that would be applicable in some way to
managers at all levels in the organizational structure and in each of the operating functions such
as procurement, sales and marketing, and finance. It is reasonable to begin such a list with
Fayol’s famous observation that “to manage is to forecast and plan, to organize, to command, to
coordinate, and to control” and then perhaps add the “staffing” activity. However, in the
discussion of specific functions below staffing will be integrated into “organizing”. Expanding
the list much further arguably adds too much complexity and concepts such as “reporting and
budgeting” might be treated as tools for coordination and control (Kotterman, 2006).

Planning
Planning relates to the task of creating plans of action for forecasting and coping with future
conditions, including developing strategic objectives and setting attainable goals in light of the
activities of the organization, the resources of the organization and anticipated trends and
developments in the organization’s external environment. Simply put, “planning includes setting
goals and defining the actions necessary to achieve the goals, in light of the situation”. Planning
is perhaps the most difficult of the five functions—after all, it involves making choices about
future actions from among a variety of alternatives, each of which has its own advantage,
disadvantages and risks—and requires the involvement and participation of the entire
organization. While Fayol obviously believed that planning was important, he also recognized
that unforeseen events would occur and thus acknowledged that plans should not be too rigid or
inflexible. Planning involves a series of steps and processes including environmental scanning,
forecasts of future opportunities and threats and, finally, identification of goals and objectives for
the organization and development of plans of action to achieve those goals and objectives. As
Fayol noted, planners must be prepared for “contingencies” and even the best plans must be
monitored to evaluate their viability and changes may be needed as new information becomes
available during the planning period. Planning becomes even more challenging and complex as
an organization matures and grows since plans must be developed and coordinated at different
levels and with different time horizons (Culpan & Kucukemiroglu, 1993).

Strategic planning involves the classic and well-known process of so-called “SWOT analysis”,
including identifying the strengths (“S”) and weaknesses (“W”) of the organization and the
competitive opportunities (“O”) and threats (“T”) in the external environment of the organization
as a prelude to deciding how the organization should be positioned to compete and prosper. The
strategic plan is the primary responsibility of the senior managers of the organization and
generally has a relatively long time horizon. Involvement of senior management is essential since
they are the ones best situated to define the organization’s overall mission and specify goals and
objectives that are tied to that mission and realistic given the results of the SWOT analysis.
Tactical planning includes the development of specific plans of action to implement elements of
the overall strategic plan. Tactical plans cover a somewhat shorter time horizon than the strategic
plan—generally one to three years—and are typically assigned to mid-level managers with
greater familiarity with the specific activities and resources associated with the plan. Operational
planning has a very short time horizon, sometimes as brief as one week but typically no longer
than one year, and covers very specific steps and actions that need to be completed in order to
support the broader goals and objectives laid out in the strategic and tactical plans. As with
tactical plans, operational planning is done by managers at lower levels of the organizational
hierarchy; however, senior managers should assist by providing managers at all levels with the
necessary information and planning tools. Responsibility for overall planning and strategy
generally lies with senior management; however, managers at all levels of the organizational
hierarchy must have the skills necessary to allow them to set goals for their work groups and
develop strategies and operational plans that their subordinates can understand and follow in
order to achieve those goals. In addition, managers throughout the organization must participate
in planning initiatives focusing on coordinating the use of organizational resources so that all of
them have access to the resources they need in order to achieve the goals that have been set for
their work groups (Mintzberg, 1975).
Organizing
Organizing involves “determining the tasks to be done, who will do them, and how those tasks
will be managed and coordinated”. Managers performing this function must make decisions
about organizing the capital, personnel, raw materials and other resources available to the
organization in a manner that is efficient and properly aligned with the activities that must be
performed by the organization. In other words, managers must create, implement and manage an
organizational structure that allocates the human resources of the organization in a way that is
most effective for achieving the goals and objectives established for the organization. When
defined in this manner, organizing includes activities that other scholars, such as Koontz and
O’Donnell, have categorized as “staffing” and which include identification of workforce
requirements, inventorying the skills of people already available within the organization,
recruitment of new employees with skills not otherwise available, placement and promotion,
career planning, compensation and training and development. Organization of activities and
relationships within the firm must be addressed continuously by the manager, particularly as the
volume of activities increases and the number of employees expands. The organizing function
also includes recruiting the right person for each job, making sure that the workforce is trained in
the skills necessary to perform their jobs at the level required in order to achieve the plans set for
the organization and continuously evaluating the performance of each person to determine
whether their activities meet the standards set by management, (Jones et al, 2000).

Controlling
Controlling refers to the actions taken by managers to ensure that the activities conducted within
the organization conform to the organizational goals and objectives and policies established by
the organization. In other words, managers control in order to keep things going “according to
plan” and make sure that subordinate adhere to the principles established through the other
managerial functions (work is conducted in a manner consistent with the organizational structure
established by the manager). Control methods include observation of the activities of
departments and individual subordinates, measurement of performance and reports of deviations
from organizational goals and policies accompanied by appropriate remedial actions. While the
term “controlling” is often associated with “manipulation” and thus has a negative connotation,
in this context the process is not intended to unnecessarily interfere in the way that jobs are
performed or create stress or discomfort for subordinates but rather is concerned with the
responsibility of the manager to ensure that his or her decisions in fulfilling the other functions
are leading to the expected leading to the desired results (Black & Lynch, 2001).

Controlling is an integral part of the commanding function and is also closely related to the
manager’s planning responsibilities. In fact, the foundation for a manager’s controlling activities
is actually the creation of a plan for the resources under the manager’s control accompanied by
performance goals and objectives that can be measured during the controlling process. Barnett
has explained that controlling consists of three steps: “establishing performance standards,
comparing actual performance against standards, and taking corrective action when necessary”.
Many goals and objectives set by an organization can be defined in monetary terms, such as
revenues, expenses and profits; however, other non-monetary performance standards must be
used to assess key organizational activities such as the volume of units produced, the percentage
of defective products and quantitative measures of customer satisfaction. Managers must be
familiar with a variety of reports and other tools in order to become proficient “controllers”,
including budgets, financial statements, sales reports, manufacturing reports, customer
satisfaction surveys, performance audits and formal performance appraisals of individual
workers. While financial-based goals and objectives require a great deal of attention for the
“controller”, Barnett cautions that “managers must also control production/operations processes,
procedures for delivery of services, compliance with company policies, and many other activities
within the organization” (Bloom & Van Reenen, 2006).

Q. 2

Leaders will have a vision of what can be achieved and then communicate this to others and
evolve strategies for realizing the vision. They motivate people and are able to negotiate for
resources and other support to achieve their goals. Managers ensure that the available resources
are well organized and applied to produce the best results. In the resource constrained and
difficult environments of many low – to middle-income countries, a manager must also be a
leader to achieve optimum results. One may assume that all managers are leaders, but that is not
correct since some of the managers do not exercise leadership, and some people lead without
having any management positions. Therefore, there is a continuing controversy about the
difference between leaders and managers. Some scholars argue that although management and
leadership overlap, the two activities are not synonymous (Bass, 2010). Furthermore, the degree
of overlap is a point of disagreement (Yukl, 1989). In fact, some individual see them as extreme
opposites, and they believe that good leader cannot be a good manager and the opposite is true
(Ricketts, 2009).

Managers focus on formal directing and controlling of their assistants, resources, structures, and
systems (Kotter, 2001). Managers aim to reach short term goals, avoid any risks, and establish
standardization to improve efficiency. The employees follow a manager‘s direction in exchange
for being paid a salary, known as a transactional style (Kotter, 2001).Research shows that being
an effective manager depends upon three special skill sets: technical, human and conceptual. The
technical skill refers to the proficiency in a specific type of work. This may include competencies
within a specialized field, or the ability to use appropriate tools and techniques. Human skill
refers to the ability to work with people, which allow a manager to assist group members to
complete a task. Conceptual skill refers to the ability to work with ideas (Katz, 1955). In
addition, an effective manager needs to have specific qualities like: good communication;
organizational; negotiation; and delegation skills (Kappa, 1991).

Leadership is a complex, multidimensional phenomena (DePree, 1989). It has been defined as: a
behaviour; a style; a skill; a process; a responsibility; an experience; a function of management; a
position of authority; an influencing relationship; a characteristic; and an ability (Northouse,
2007). John Maxwell defined leadership by influence (Maxwell, 1998). Kotter (1990) stated that
―Leadership is the capacity for collective action to vitalize‖. Robert Greenleaf defined effective
leadership as people who serve others, while they follow them (Bennis and Nanus, 1997).
Moreover, Peter Drucker defined a leader is someone who has followers (Drucker, 1999).
However, some theorists believe that leadership is a form of the social influence processes
(House and Aditya, 1997). Although there are a variety of leadership definitions, the majority of
definitions focused on two components which are: the process of influencing a group of
individuals to obtain a common goal; and to develop a vision. Leaders focus on motivation, and
inspiration (Kotter, 1990). Leaders aim to create passion to follow their vision, to reach long
term goals, take risks to accomplish common goals, and challenge the current status quo (Bennis
and Nanus, 1997).
The leader keeps an open eye on his followers ‘benefits, so people follow the leader voluntarily,
and the leader directs the follower by using a transformational style (Bass, 1990). Leaders should
have some critical qualities such as integrity; vision; toughness; decisive; trust; commitment;
selflessness, creativity; risk taking; toughness; communication ability, and visibility (Capowski,
1994). Moreover, leaders should have charisma; a sense of mission; ability to influence people in
a positive environment; and ability to solve problems In addition, House (1977) shows that being
an effective leader depends upon common behaviours and characteristics like: confidence;
service mentality; good coaching skills; reliability; expertise; responsibility; good listening skills;

Work focus

Managers are paid to get things done (they are subordinates too), often within tight constraints of
time and money. They thus naturally pass on this work focus to their subordinates.

Seek comfort

An interesting research finding about managers is that they tend to come from stable home
backgrounds and led relatively normal and comfortable lives. This leads them to be relatively
risk-averse and they will seek to avoid conflict where possible. In terms of people, they generally
like to run a 'happy ship'.

Leaders have followers

Leaders do not have subordinates - at least not when they are leading. Many organizational
leaders do have subordinates, but only because they are also managers. But when they want to
lead, they have to give up formal authoritarian control, because to lead is to have followers, and
following is always a voluntary activity.

Charismatic, transformational style

Telling people what to do does not inspire them to follow you. You have to appeal to them,
showing how following you will lead them to their hearts' desire. They must want to follow you
enough to stop what they are doing and perhaps walk into danger and situations that they would
not normally consider risking. Leaders with a stronger charisma find it easier to attract people to
their cause. As a part of their persuasion they typically promise transformational benefits, such
that their followers will not just receive extrinsic rewards but will somehow become better
people.

People focus

Although many leaders have a charismatic style to some extent, this does not require a loud
personality. They are always good with people, and quiet styles that give credit to others (and
take blame on themselves) are very effective at creating the loyalty that great leaders engender.
Although leaders are good with people, this does not mean they are friendly with them. In order
to keep the mystique of leadership, they often retain a degree of separation and aloofness. This
does not mean that leaders do not pay attention to tasks - in fact they are often very achievement-
focused. What they do realize, however, is the importance of enthusing others to work towards
their vision.

Seek risk

In the same study that showed managers as risk-averse, leaders appeared as risk seeking,
although they are not blind thrill seekers. When pursuing their vision, they consider it natural to
encounter problems and hurdles that must be overcome along the way. They are thus
comfortable with risk and will see routes that others avoid as potential opportunities for
advantage and will happily break rules in order to get things done.

Here's a practical example on the difference between management and leadership:

A construction company, Blessing Construction Company, is working on an important project

with a tight deadline. The team consists of 10 constructors, 2 civil engineers and 1 project
manager, Kabwe.

Management Focus (Kabwe's Approach):

As the project manager, Kabwe focuses on:

 Planning by creating detailed project schedules and resource allocation plans (Kerzner,
2013).
  Organizing by assigning tasks, setting deadlines, and monitoring progress (Gray &
Larson, 2014).
 Controlling by tracking bugs, issues, and ensuring quality standards (Project Management
Institute, 2017).
 Budgeting by managing project expenses and resources (Meredith & Mantel, 2012).

Leadership Focus (Alternative Approach):

Now, consider an alternative scenario where Kabwe adopts a leadership approach:

 Inspiring: He shares the project's vision, emphasizing its impact on the company's growth
and the team's professional development (Kotter, 2001).
 Empowering: Kabwe encourages team members to take ownership, make decisions, and
suggest improvements (Hackman & Johnson, 2013).
 Motivating: He recognizes individual contributions, provides constructive feedback, and
fosters a collaborative environment (Goleman, 2000).
 Visioning: He aligns the project with the company's strategic goals, ensuring the team
understands the bigger picture (Porter, 1985).

The key differences between management and leadership are on the:

 Focus: Management focuses on tasks, schedules, and resources, while leadership focuses
on people, vision, and inspiration (Zaleznik, 1977).
 Approach: Management is more directive, whereas leadership is more collaborative
(Drucker, 1954).
 Outcome: Management ensures project completion, while leadership drives innovation,
engagement, and growth (Kotter, 1995).

In this scenario, management ensures the project is completed successfully, but the team may
feel micromanaged and demotivated. Leadership inspires the team to deliver exceptional results,
fosters innovation, and promotes professional growth. Management and leadership are not
mutually exclusive; effective managers can exhibit leadership qualities (Mintzberg, 1971).
Leaders focus on people and vision, while managers focus on tasks and resources (Bennis &
Nanus, 1985). Organizations need both management and leadership to succeed (Higgins &
McAllaster, 2004).
 CONCLUSION

Leadership and management entail a unique set of activities or functions. While leaders and
managers share some similarities because they both influence others by using specific powers to
achieve certain goals, there are also some prominent differences (Northouse, 2007). While,
managers maintain a smoothly functioning workplace, leaders test the current position and
encourage new functions, so they are looking for long-term goals (Yukl, 1989). In today‘s
vigorous workplace, organizations need both effective management, and effective leadership for
optimal success (Kotterman, 2006).
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